Australia’s credit managers have confirmed that 2012 was a particularly tough year for creditors, with most battening down the hatches and insulating their organizations from potential defaults via tighter lending criteria, shortening payments terms and a tougher line on unpaid accounts.

Released today the Credit Management in Australia 2012 report from Veda, Asia Pacific’s leading provider of consumer and commercial data intelligence and insights, shows that while companies tightened up their lending practices significantly during the year, there was optimism that 2013 will be a better year, with business sentiment improving, credit applications rising and the introduction of the Personal Property Securities Register (PPSR) having a positive effect on their business.

The report aims to detail the effect economic conditions and business sentiment had on credit management practices throughout Australia during the year.  The online survey of more than 250 firms polled organizations that had between 500 and 10,000 customers operating on a national basis and employing more than 100 people.  These entities operated across a wide variety of industry sectors, including construction; finance and insurance; transport and storage; wholesale trade, etc.  Survey participants had an average 20 years of experience in credit management.

“The outlook for 2013 is looking better, with credit criteria appearing to loosen within the next six months, credit applications increasing and a decline in the gloom around economic conditions having a negative impact on their organizations.

Source: Veda Advantage